Singapore is one of Asia’s top business hubs, known for its global connectivity, robust legal system, and highly skilled workforce. In 2025, companies continue to choose Singapore for expansion due to its pro-business environment and strategic location. However, navigating Singapore’s labor regulations, payroll management, and HR compliance can be complex without a local entity.
This is where a Professional Employer Organization (PEO) or Employer of Record (EOR) becomes essential. With a PEO in Singapore, you can hire employees quickly, remain fully compliant, and manage payroll seamlessly—without the heavy burden of establishing a legal subsidiary.
Table of Contents
- What Is a PEO in Singapore
- PEO vs EOR in Singapore – What’s the Difference?
- Why Use a PEO in Singapore Instead of Setting Up an Entity?
- Key Employment Insights in Singapore
- No Entity? No Problem
- How a PEO Helps With Payroll, Tax & Benefits in Singapore
- Singapore Labor Laws Made Simple With a PEO
- When to Choose a PEO Over Other Hiring Models
- What to Look for in a Singapore PEO Partner
- Asanify’s Advantage as a PEO in Singapore
- What Does It Cost to Build a Team in Singapore?
- Why Choose a PEO in Singapore?
- Ready to Hire in Singapore? Here’s What to Do Next
- FAQs
What Is a PEO in Singapore?
A PEO in Singapore is a trusted HR partner that helps businesses manage workforce operations locally while ensuring compliance. Acting as a co-employer, a PEO like Asanify provides services such as:
- Payroll processing and management
- Salary disbursement with tax and CPF compliance
- Statutory benefits and optional perks administration
- Drafting and managing compliant employee contracts
- HR documentation and filings with Singapore authorities
- Contractor management for freelancers and consultants
This model is ideal for startups, SMEs, and scaling businesses that want to hire in Singapore without the cost and complexity of setting up a local entity.
With Asanify PEO services, you can employ professionals across Singapore and 160+ countries. You retain control over daily work while we handle HR, payroll, and compliance.
PEO vs EOR in Singapore – What’s the Difference?
It’s important to distinguish between a PEO and an Employer of Record (EOR) in Singapore. Both simplify hiring, but they work differently:
| Feature | PEO in Singapore | EOR in Singapore |
| Legal Employer | Client (shared employer) | EOR provider (full legal employer) |
| Entity Requirement | Requires local entity | No entity required |
| Payroll & HR | Shared with client | Fully managed by EOR |
| Best For | Companies with entity | Startups testing market |
| Immigration & Visas | Handled by client | Managed by EOR |
| Contracts | Client issues contracts | EOR provides compliant contracts |
| Switching to Entity | Already in place | Smooth transition supported |
Why Use a PEO in Singapore Instead of Setting Up an Entity?
Working with a PEO in Singapore offers agility, compliance, and cost savings. Asanify’s PEO service allows you to onboard and manage top talent in Singapore without setting up a legal entity.
Hire Top Talent in Singapore
- Access skilled professionals in finance, IT, biotech, and logistics
- Hire across Singapore quickly without red tape
- Provide competitive, compliant compensation packages
Build Your Global Employer Brand
- Offer benefits aligned with Singapore’s labor laws
- Stay compliant with CPF (Central Provident Fund) and working hours
- Use a salary calculator to benchmark pay against market standards
Reduce HR and Legal Overhead
- No need for local HR, payroll, or legal teams
- Avoid entity setup costs and regulatory risks
- Save on administration with Asanify’s automated platform
Test & Expand Into New Markets
- Hire one or multiple employees easily
- Test Singapore as a growth hub before setting up locally
- Transition to your own entity later with full support
Suggested Read: EOR Singapore: A Detailed Guide on Employer of Record 2025
Simplify Global Compliance
- Stay aligned with Singapore’s 44-hour workweek and overtime policies
- Ensure compliance with public holiday pay, leave, and CPF rules
- Rely on experts for filings, tax submissions, and inspections
Key Employment Insights in Singapore
Payroll & Contributions
- Monthly payroll cycle
- Employer CPF contribution: 17% (for Singapore citizens & PRs)
- Employee CPF contribution: 20%
Leave Policies
- 11 public holidays annually
- Paid annual leave: 7–14 days (increases with tenure)
- Sick leave: 14 days outpatient, 60 days hospitalization
- Maternity leave: 16 weeks
- Paternity leave: 2 weeks
Bonuses & Benefits
- 13th-month (AWS) common in many industries
- Medical insurance and allowances popular among employers
Income Tax (2025)
- Progressive rates: 0%–24%
- Non-residents taxed at flat 15% or higher, depending on income type
Cultural Insights
- Business communication is formal but pragmatic
- Punctuality and hierarchy respected
- English widely used, with Mandarin and Malay also common
No Entity? No Problem
With Asanify as your PEO in Singapore, you can hire without registering a local entity.
- Start hiring in days instead of months
- Eliminate legal risks around misclassification
- Expand into Singapore affordably and compliantly
How a PEO Helps With Payroll, Tax & Benefits in Singapore
A PEO streamlines HR operations by managing:
- Monthly payroll calculations and disbursements
- CPF and tax deductions
- Benefits such as healthcare, allowances, and leave administration
- Compliance with MOM (Ministry of Manpower) regulations
Singapore Labor Laws Made Simple With a PEO
A PEO ensures compliance with key labor regulations:
- Working hours: 44 hours per week, overtime capped
- Probation periods: 3–6 months standard
- Leave: 7–14 days annual leave, plus public holidays
- Termination: Notice period based on tenure, severance in specific cases
- Union interactions: Compliance with collective agreements where applicable
When to Choose a PEO Over Other Hiring Models
A PEO in Singapore is ideal if you:
- Want to test the Singaporean market before committing
- Need to hire small teams or project-based staff
- Are scaling rapidly and need quick HR support
- Aim to reduce compliance and admin overhead
What to Look for in a Singapore PEO Partner
When selecting a PEO in Singapore, look for:
- Strong expertise in Singapore labor laws and CPF compliance
- Efficient employee onboarding and payroll processing
- Transparent, predictable pricing
- Risk management and legal compliance safeguards
- HR automation and salary benchmarking tools
- Visa and work permit assistance
Asanify’s Advantage as a PEO in Singapore
Asanify provides end-to-end HR solutions:
- Onboarding within 48 hours
- Automated payroll tools with compliance integration
- Real-time updates on labor laws and CPF rules
- Transparent and scalable pricing
- Local HR and compliance expertise
What Does It Cost to Build a Team in Singapore?
Companies usually choose between:
Option 1: Setting Up a Local Entity in Singapore
- Requires registering with ACRA (Accounting and Corporate Regulatory Authority)
- Open a corporate bank account
- Appoint directors and file with CPF and IRAS (tax authority)
- Timeline: 6–10 weeks
- Cost: SGD 10,000–25,000+
Option 2: Hiring Through a PEO in Singapore
- No entity required
- Fully compliant contracts, payroll, and benefits management
- Contractor management included
- Here’s the pricing in a clean table format:
| Service Type | Pricing (Per Employee / Month, 2025) |
|---|---|
| PEO Solution | $49 USD |
| Employer of Record (EOR) | $199 USD |
Why Choose a PEO in Singapore?
- Onboard employees in under a week
- Avoid upfront HR and legal burdens
- Reduce compliance risks with local expertise
- Focus on scaling your business
Suggested Read: Labour Laws in Singapore: A Complete 2025 Guide
Ready to Hire in Singapore? Here’s What to Do Next
Hiring in Singapore doesn’t have to be complex. Start by booking a free consultation with Asanify to discuss your hiring objectives, and we’ll walk you through our Singapore compliance checklist so you’re aligned with local labor laws from day one. With our automated platform, you can seamlessly onboard and manage employees in less than a week. You’ll also gain access to visa processing, payroll, and remote hiring support everything you need to scale your team in Singapore quickly and compliantly.
FAQs
A Professional Employer Organization (PEO) in Singapore co-employs staff with your entity and manages payroll, HR, and compliance.
It helps you quickly hire and manage employees while ensuring CPF, tax, and labor law compliance.
A PEO requires your own entity, while an EOR is the legal employer on your behalf—no entity required.
Yes, PEOs handle payroll processing, CPF contributions, and statutory filings.
Most PEOs, like Asanify, onboard employees in under a week.
Yes, many PEOs also provide contractor management solutions.
Look for compliance expertise, transparent pricing, and digital payroll tools.
Yes, a good PEO will ensure a smooth transition to your entity.
Yes, PEOs like Asanify provide salary calculators to design competitive pay.
Yes, it saves setup costs, reduces compliance risks, and provides scalability.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.
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